Will Alcoa (AA) Stock Be Helped by Agreement to Avoid Smelter Cutbacks?
NEW YORK (TheStreet) -- Alcoa (AA) - Get Report stock is declining by 1.57% to $10.99 in late-afternoon trading on Monday, despite the company reaching an agreement with a Washington smelter's power provider to avoid planned smelter cutbacks.
Alcoa has reached an agreement with the Bonneville Power Administration amending its supply contract, according to a statement by the aluminum producer. The changes will be effective from July 1 through Feb. 14, 2018.
The agreement "provides for additional access to market power during this period," according to the statement.
Alcoa had previously announced that the Intalco smelter had planned cuts by the end of the second quarter.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Alcoa's strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated are countered by weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: AA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
